Tenaris Announces 2010 Fourth Quarter and Annual Results

The Financial and Operational Information Contained in This Press Release Is Based on Audited Consolidated Financial Statements Presented in U.S. Dollars and Prepared in Accordance With International Financial Reporting Standards as Issued by the International Accounting Standard Board and Adopted by the European Union, or IFRS

LUXEMBOURG--(Marketwire - February 23, 2011) - Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS)
(MILAN: TEN) ("Tenaris") today announced its results for the fourth quarter
and year ended December 31, 2010 with comparison to its results for the
fourth quarter and year ended December 31, 2009.

Our sales in the fourth quarter rose 2% sequentially reflecting a limited
recovery in shipments in our Projects operating segment. Shipments and
sales in our Tubes operating segment declined by 1% sequentially but
recorded significant year on year increases, primarily reflecting higher
demand in the USA and Canada. Operating income, which included an
impairment reversal of $67.3 million at our Canadian welded operations,
rose 12% on a sequential basis and 37% year on year. Our net cash position
(total financial debt less cash and other current investments) declined by
US$195.5 million to US$275.6 million at the end of the quarter, following
investments of US$286.1 million in capital expenditures, an increase of
US$152.7 million in working capital and the payment of an interim dividend
of US$153.5 million.

In 2010, shipments in our Tubes operating segment rose 27% year on year led
by a recovery in demand from the USA, Canada and Argentina. Net sales,
however, were flat and our Tubes operating income declined reflecting lower
prices and a mix with a higher proportion of welded and API products.
Shipments, sales and operating income from our Projects operating segment
declined heavily reflecting a strong slowdown in pipeline projects in South
America. Our net cash position declined by US$400.2 million to US$275.6
million at the end of the year, following substantial investments in
capital expenditures amounting to US$847.3 million and increase in working
capital of US$644.0 million. Dividends paid during the year amounted to
US$401 million.

Annual Dividend Proposal

The board of directors proposes, for the approval of the annual general
shareholders' meeting to be
held on June 1, 2011, the payment of an annual dividend of US$0.34 per
share (US$0.68 per ADS), or approximately US$401 million, which includes
the interim dividend of US$0.13 per share (US$0.26 per ADS), or
approximately US$153 million, paid in November, 2010. If the annual
dividend is approved by the shareholders, a dividend of US$0.21 per share
(US$0.42 per ADS), or approximately US$248 million will be paid on June 23,
2011, with an ex-dividend date of June 20, 2011.

Market Background and Outlook

In 2010, global drilling activity recovered led by substantially higher oil
drilling activity in the USA and Canada. US gas drilling activity also
increased driven by investments in shale and liquid rich plays and
production from shale gas reached 23% of total US natural gas production in
2010. In the rest of the world, activity increased in most markets
reflecting increased demand for energy, stable oil prices at attractive
levels and investment in regional gas developments The international rig
count, as published by Baker Hughes, surpassed pre-crisis levels in the
third quarter and has continued to climb steadily since then.

We expect that drilling activity will continue to grow in 2011 led by
increased exploration activity in Eastern Hemisphere markets, more thermal
wells in Canada and higher activity in Iraq.

We estimate that apparent demand for OCTG rose 30% in 2010 compared to 2009
with the most significant increases occurring in the USA, Canada and
Russia. In 2011, we expect that demand will grow further with increases
occurring in most markets. We also expect that growth in demand for premium
products will be higher than that for API products.

We expect that our sales will grow in all our geographical regions in 2011
and that our sales of line pipe, power generation and industrial products
will increase as well as those of our OCTG products. Sales in our Projects
and Others operating segments are also expected to increase. Although our
selling prices are expected to rise, these increases are likely to be
initially offset by increases in raw material and other costs. Accordingly,
we expect that our sales and operating income will increase in 2011,
compared to 2010.

Net sales of tubular products and services decreased 1% sequentially due to
a decrease in shipments volumes. Year on year, sales increased 17%, as a
31% increase in volumes was partially offset by an 11% decrease in average
selling prices. In North America, sales rose sequentially as stable
shipments in the USA and Mexico and higher shipments in Canada offset the
effect of a less favourable product mix. In South America, sales on a
sequential basis were affected by lower shipments to Venezuela. In Europe,
sales increased sequentially due to higher demand for mechanical pipe and
increased shipments of OCTG products in Romania. In the Middle East and
Africa, sales declined sequentially due primarily to lower shipments of
line pipe products.

Net sales of Projects amounted to US$146.2 million in the fourth quarter of
2010, 53% higher than the third quarter but 34% lower compared to the
fourth quarter of 2009. Sequentially, revenues and operating income
increased driven by the recovery in shipment volumes.

Net sales of other products and services amounted to US$158.6 million in
the fourth quarter of 2010, 8% higher sequentially and 26% higher compared
to the fourth quarter of 2009. The sequential increase in sales was mainly
due to higher sales at our Brazilian industrial equipment business.

Selling, general and administrative expenses, or SG&A, amounted to 19.7% of
net sales, equal to the fourth quarter of 2009, but higher than the 18.3%
corresponding to the third quarter of 2010. Sequentially, SG&A increased
mainly due to seasonal end-of-year charges and to the effect of foreign
exchange currencies on fixed and semi-fixed expenses.

Other operating income (expense) amounted to a net gain of US$74.8 million
in the fourth quarter of 2010, including a gain of US$67.3 million from the
reversal of an impairment at our Canadian welded operations. We reversed
the impairment registered in 2008, corresponding to Prudential's customer
relationships, as our expectations for the economic and competitive
conditions of the Canadian oil and gas market have improved compared to
those foreseen at the end of 2008.

Net interest expenses amounted to US$4.8 million in the fourth quarter of
2010, compared to a net interest income of US$4.0 million in the previous
quarter and to net interest expenses of US$16.1 million in the same period
of 2009. Sequentially, interest income decreased from US$14.0 million to
US$7.4 million, mainly due to lower gains on fair value valuation of
investments.

Other financial results generated a loss of US$5.4 million during the
fourth quarter of 2010, compared to a loss of US$16.2 million during the
third quarter of 2010 and a gain of US$3.4 million in the same period of
2009. These results largely reflect gains and losses on net foreign
exchange transactions and the fair value of derivative instruments and are
to a large extent offset by changes to our net equity position. These gains
and losses are mainly attributable to variations in the exchange rates
between our subsidiaries' functional currencies (other than the US dollar)
and the US dollar in accordance with IFRS.

Equity in earnings of associated companies generated a gain of US$11.7
million in the fourth quarter of 2010, compared to a gain of US$15.6
million in the previous quarter and of US$18.8 million in the same period
of 2009. These results mainly derived from our equity investment in
Ternium.

Income tax charges totalled US$134.2 million in the fourth quarter of 2010,
equivalent to 30% of income before equity in earnings of associated
companies and income tax, compared to 27% in the previous quarter and 30%
in the same period of 2009.

Income attributable to non-controlling interests amounted to US$0.3 million
in the fourth quarter of 2010, compared to losses attributable to
non-controlling interests of US$2.1 million in the previous quarter and
gains attributable to non-controlling interests of US$18.4 million in the
fourth quarter of 2009. These results are mainly derived from
non-controlling interests at our Brazilian subsidiary, Confab, and at our
Japanese subsidiary, NKKTubes.

Cash Flow and Liquidity of 2010 Fourth Quarter

Net cash provided by operations during the fourth quarter of 2010 was
US$253.8 million, compared to US$122.1 million in the previous quarter and
US$417.0 million in the fourth quarter of 2009. Working capital increased
by US$152.7 million during the fourth quarter of 2010 ( mainly due to an
increase in inventories), compared to an increase of US$427.9 million in
the previous quarter and a decrease of US$202.4 million in the fourth
quarter of 2009.

Capital expenditures amounted to US$286.1 million for the fourth quarter of
2010, compared to US$212.8 million in the previous quarter and US$133.1
million in the fourth quarter of 2009. The increase in the capital
expenditures throughout the year is mainly attributable to the construction
of the new small diameter rolling mill at our Veracruz facility in Mexico.

During the quarter, our net cash position (total financial debt less cash
and other current investments) declined by US$195.5 million to US$275.6
million at the end of the quarter, following investments of US$286.1
million in capital expenditures, an increase of US$152.7 million in working
capital and the payment of an interim dividend of US$153.5 million.

Net sales of tubular products and services amounted to US$6,676.4 million
in 2010, compared to US$6,670.9 million in 2009, as a 27% increase in
shipment volumes was offset by lower average selling prices. In North
America, higher drilling activity in the USA and Canada and a reduction in
US OCTG inventory to more normal level by the end of the first quarter of
2010 led to significantly higher shipments partially offset by lower demand
in Mexico but prices were at lower levels than in 2009. In South America,
higher drilling activity and overall demand in Argentina and Colombia more
than offset a decline in pipe prices. In Europe, lower sales prices and
lower demand in the North Sea region more than offset higher shipments of
mechanical pipe products. In the Middle East and Africa, although shipments
of OCTG products remained stable, sales were affected by lower shipments of
line pipe products and lower selling prices. In the Far East and Oceania,
sales declined due to lower average selling prices.

Cost of sales of tubular products and services, expressed as a percentage
of net sales, rose from 57% to 60%, as the reduction in costs of sales did
not completely offset the reduction in average selling prices.

Operating income from tubular products and services, decreased 11% to
US$1,403.3 million in 2010, from US$1,576.8 million in 2009, (in 2010
operating income included a gain of US$67.3 million from the reversal of an
impairment registered in 2008, on Prudential's customer relationships), as
a 27% increase in shipments volumes was offset by the decrease in gross
margin.

Net sales of Projects decreased 57% to US$428.8 million in 2010, compared
to US$986.5 million in 2009, reflecting a sharp decrease in shipments to
gas and other pipeline projects in South America.

Operating income from Projects decreased 69% to US$63.7 million in 2010,
from US$208.6 million in 2009, due to the decrease in net sales and a lower
operating margin due to the effect of fixed and semi-fixed general and
administrative expenses on lower sales, including the effect of the
revaluation of the Brazilian real against the U.S. dollar.

Net sales of other products and services increased 23% to US$606.4 million
in 2010, compared to US$491.8 million in 2009, mainly due to higher sales
of sucker rods, welded pipes for electric conduits and industrial equipment
.

Operating income from other products and services, increased 279% to
US$106.5 million in 2010, from US$28.1 million in 2009, due to the increase
in net sales and the improvement in margins.

Selling, general and administrative expenses, or SG&A, increased as a
percentage of net sales to 19.7% in 2010 compared to 18.1% in 2009, mainly
due to the effect of foreign exchange currencies on fixed and semi-fixed
expenses. In absolute terms SG&A increased US$42.1 million to US$1,515.9
million in 2010, from US$1,473.8 million in 2009, mainly due to higher
labor costs affected by the effect of foreign exchange currencies.

Other operating income and expenses resulted in net income of US$78.6
million in 2010, compared to a net income of US$3.0 million in 2009. In
2010, we recorded a gain of US$67.3 million from the reversal of an
impairment at our Canadian welded operations. We reversed the impairment
registered in 2008, corresponding to Prudential's customer relationships,
as our expectations for the economic and competitive conditions of the
Canadian oil and gas market have improved compared to those foreseen at the
end of 2008.

Net interest expenses totalled US$31.2 million in 2010, compared to net
interest expenses of US$87.5 million in 2009, reflecting the change in our
net debt position to a net cash position and lower interest rates.

Other financial results generated a loss of US$21.3 million in 2010,
compared to a loss of US$64.2 million during 2009. These results largely
reflect losses on net foreign exchange transactions and the fair value of
derivative instruments and are to a large extent offset by changes to our
net equity position. These losses are mainly attributable to variations in
the exchange rates between our subsidiaries' functional currencies (other
than the US dollar) and the US dollar in accordance with IFRS.

Equity in earnings of associated companies generated a gain of US$70.1
million in 2010, compared to a gain of US$87.0 million in 2009. These gains
were derived mainly from our equity investment in Ternium.

Income tax charges totalled US$450.0 million in 2010, equivalent to 30% of
income before equity in earnings of associated companies and income tax,
compared to US$513.2 million in 2009, equivalent to 31% of income before
equity in earnings of associated companies and income tax.

Result for discontinued operations amounted to a loss of US$28.1 million in
2009, relating to the discontinuation of Tavsa and Matesi's operations,
while there were no results for discontinued operations in 2010.

Net income decreased to US$1,141.0 million in 2010, compared to US$1,207.6
million in 2009, mainly reflecting lower operating results, better
financial results and lower income taxes.

Income attributable to equity holders was US$1,127.4 million, or US$0.95
per share (US$1.91 per ADS), in 2010, compared to US$1,161.6 million, or
US$0.98 per share (US$1.97 per ADS) in 2009.

Income attributable to non-controlling interest was US$13.7 million in
2010, compared to US$46.0 million in 2009, mainly reflecting lower results
at our Brazilian subsidiary, Confab, and losses at our Japanese subsidiary
NKKTubes.

Cash Flow and Liquidity of 2010

Net cash provided by operations during 2010 was US$870.8 million, compared
to US$3,063.9 million during 2009. Working capital increased by US$644.0
million during 2010, compared with a decrease of US$1,737.3 million in
2009, reflecting the positive change in the levels of activity.

Capital expenditures amounted to US$847.3 million in 2010, compared to
US$460.9 million in 2009. The increase in the capital expenditures is
mainly attributable to the construction of the new small diameter rolling
mill at our Veracruz facility in Mexico.

Dividends paid, including dividends paid to minority shareholders in
subsidiaries, amounted to US$433.3 million in 2010, of which US$248 million
were paid to equity holders in respect of the 2009 fiscal year, while
US$153 million were paid to equity holders in November 2010, as an interim
dividend in respect of the dividend corresponding to the 2010 fiscal year.
This compares to US$553.7 million paid in 2009, of which US$354 million
were paid to equity holders in respect of the 2008 fiscal year, while
US$153 million were paid to equity holders in November 2009, as an interim
dividend for the 2009 fiscal year.

During 2010, total financial debt decreased by US$202.3 million to
US$1,244.5 million at December 31, 2010 from US$1,446.8 million at December
31, 2009. Liquidity (cash and cash equivalents and other current
investments) decreased by US$602.4 million to US$1,520.1 million at
December 31, 2010 from US$2,122.5 million at December 31, 2009. Net cash
during 2010 decreased by US$400.2 million to US$275.6 million at December
31, 2010, from US$675.7 million at December 31, 2009.

Some of the statements contained in this press release are "forward-looking
statements." Forward-looking statements are based on management's current
views and assumptions and involve known and unknown risks that could cause
actual results, performance or events to differ materially from those
expressed or implied by those statements. These risks include but are not
limited to risks arising from uncertainties as to future oil and gas prices
and their impact on investment programs by oil and gas companies.